MCKESSON CORP

Segment Revenues:

North American Pharmaceutical

North American Pharmaceutical revenues for the three months ended December 31, 2025 increased $7.1 billion or 9% compared to the same prior year period. Within the segment, sales to U.S. pharmacies and healthcare providers increased $7.0 billion primarily due to higher volumes from retail national account customers, partially offset by branded to generic drug conversions.

North American Pharmaceutical revenues for the nine months ended December 31, 2025 increased $30.0 billion or 13% compared to the same prior year period. Within the segment, sales to U.S. pharmacies and healthcare providers increased $29.8 billion primarily due to higher volumes from retail national account customers, partially offset by branded to generic drug conversions.

Oncology & Multispecialty

Oncology & Multispecialty revenues for the three months ended December 31, 2025 increased $3.5 billion or 37% compared to the same prior year period primarily driven by growth in provider solutions due to the addition of providers within practice management and higher specialty pharmaceutical sales.

Oncology & Multispecialty revenues for the nine months ended December 31, 2025 increased $8.3 billion or 30% compared to the same prior year period primarily driven by growth in provider solutions due to the addition of providers within practice management and higher specialty pharmaceutical sales.

Prescription Technology Solutions

RxTS revenues for the three months ended December 31, 2025 increased $129 million or 9% compared to the same prior year period due to increased volumes from our third-party logistics and higher technology services revenues.

RxTS revenues for the nine months ended December 31, 2025 increased $433 million or 11% compared to the same prior year period due to increased volumes from our third-party logistics and higher technology services revenues.

Medical-Surgical Solutions

Medical-Surgical Solutions revenues for the three months ended December 31, 2025 increased $42 million or 1% compared to the same prior year period. Within the segment, sales to ambulatory care customers increased $27 million driven by underlying business growth and sales to extended care customers increased by $18 million. These increases were partially offset by other sales which decreased by $3 million.

Medical-Surgical Solutions revenues for the nine months ended December 31, 2025 increased $112 million or 1% compared to the same prior year period. Within the segment, sales to ambulatory care customers increased $93 million driven by underlying business growth, other sales increased by $15 million, and sales to extended care customers increased by $4 million.

Other Segment Expense, Segment Operating Profit and Corporate Expenses, Net:

(1)Other segment expense, net includes cost of sales, total operating expenses, as well as other income, net, for our reportable segments.

(2)Other segment expense, net for our North American Pharmaceutical segment includes the following:

•related to the bankruptcy of our customer Rite Aid, we recorded an immaterial net charge of $29 million during the nine months ended December 31, 2025, which primarily reflects the provision for bad debts partially offset by the disposition of rebate liabilities and vendors credits;

•cash receipts for our share of antitrust legal settlements were $15 million and $31 million for the three months ended December 31, 2025 and 2024, respectively, and $23 million and $184 million for the nine months ended December 31, 2025 and 2024, respectively;

•a credit of $10 million and a charge of $89 million related to the LIFO method of accounting for inventories for the three months ended December 31, 2025 and 2024, respectively, and a credit of $28 million and a charge of $85 million for the nine months ended December 31, 2025 and 2024, respectively;

•a charge of $604 million for the nine months ended December 31, 2024 to remeasure the assets and liabilities of the Canadian retail disposal group to fair value less costs to sell, as discussed in Financial Note 2, “Business Acquisitions and Divestitures,” to the accompanying condensed consolidated financial statements included in this Quarterly Report;

•restructuring charges of $67 million for the nine months ended December 31, 2024 for restructuring initiatives as discussed in Financial Note 3, “Restructuring, Impairment, and Related Charges, Net,” to the accompanying condensed consolidated financial statements included in this Quarterly Report; and

•a charge of $57 million for the nine months ended December 31, 2024 related to our estimated liability for opioid-related claims as discussed in Financial Note 11, “Commitments and Contingent Liabilities,” to the accompanying condensed consolidated financial statements included in this Quarterly Report.

(3)Other segment expense, net for our Oncology & Multispecialty segment includes the following:

•a net gain of $51 million for the nine months ended December 31, 2025 related to the sale of an investment and market decisions; and

•a loss of $43 million for the nine months ended December 31, 2024 related to one of the Company’s equity method investments.

(4)Other segment expense, net for our Medical-Surgical Solutions segment for the nine months ended December 31, 2024 includes restructuring charges of $169 million related to a broad set of initiatives to drive operational efficiencies and increase cost optimization efforts as discussed in Financial Note 3, “Restructuring, Impairment, and Related Charges, Net,” to the accompanying condensed consolidated financial statements included in this Quarterly Report.

(5)Corporate expenses, net includes the following:

•a charge of $62 million for the nine months ended December 31, 2024 related to the effect of accumulated other comprehensive loss components from our Canadian retail disposal group, as discussed in Financial Note 2, “Business Acquisitions and Divestitures,” to the accompanying condensed consolidated financial statements included in this Quarterly Report;

•a net gain of $101 million for the nine months ended December 31, 2024 related to our investments in equity securities of certain U.S. growth stage companies in the healthcare industry, as discussed in Financial Note 10, “Fair Value Measurements,” to the accompanying condensed consolidated financial statements included in this Quarterly Report;

•a net charge of $51 million for the nine months ended December 31, 2024 related to our estimated liability for opioid-related claims as discussed in Financial Note 11, “Commitments and Contingent Liabilities,” to the accompanying condensed consolidated financial statements included in this Quarterly Report; and

•restructuring charges of $38 million and $10 million for the three months ended December 31, 2025 and 2024, respectively, and charges of $105 million and $34 million for the nine months ended December 31, 2025 and 2024, respectively, for restructuring initiatives as discussed in Financial Note 3, “Restructuring, Impairment, and Related Charges, Net,” to the accompanying condensed consolidated financial statements included in this Quarterly Report.

North American Pharmaceutical

Operating profit for this segment increased for the three months ended December 31, 2025 compared to the same prior year period largely due to the disposition of rebate liabilities and vendors credits related to the bankruptcy of Rite Aid, higher pharmaceutical distribution volumes across the segment, and a LIFO credit in the current year compared to a charge in fiscal 2025, partially offset by an increase in operating expenses to support higher volumes and a decrease from net cash proceeds received representing our share of antitrust legal settlements.

Operating profit for this segment increased for the nine months ended December 31, 2025 compared to the same prior year period primarily due to prior year remeasurement charges related to our Canadian retail disposal group held for sale, as discussed in Financial Note 2, “Business Acquisitions and Divestitures” to the accompanying condensed consolidated financial statements included in this Quarterly Report, higher pharmaceutical distribution volumes across the segment, a LIFO credit in the current year compared to a charge in fiscal 2025, and a prior year charge of $57 million related to our estimated liability for opioid-related claims. These increases are partially offset by the impact of the bankruptcy of Rite Aid, a decrease from net cash proceeds received representing our share of antitrust legal settlements, and an increase in operating expenses to support higher volumes.

Oncology & Multispecialty

Operating profit for this segment increased for the three months ended December 31, 2025 compared to the same prior year period primarily due to growth in specialty pharmaceuticals, partially offset by an increase in operating expenses to support higher volumes.

Operating profit for this segment increased for the nine months ended December 31, 2025 compared to the same prior year period primarily due to growth in specialty pharmaceuticals, a net gain of $51 million related to the sale of an investment and market decisions, and a prior year loss of $43 million related to one of our equity method investments, partially offset by an increase in operating expenses to support higher volumes.

Prescription Technology Solutions

Operating profit for this segment increased for the three months ended December 31, 2025 compared to the same prior year period driven by increased volumes primarily from growth in our technology services.

Operating profit for this segment increased for the nine months ended December 31, 2025 compared to the same prior year period driven by increased volumes primarily from growth in our technology services.

Medical-Surgical Solutions

Operating profit for this segment decreased for the three months ended December 31, 2025 compared to the same prior year period primarily due to a decline in the contribution from our ambulatory care and extended care businesses, partially offset by higher restructuring charges in fiscal 2025.

Operating profit for this segment increased for the nine months ended December 31, 2025 compared to the same prior year period primarily due to higher restructuring charges in fiscal 2025 and lower expenses resulting from business rationalization initiatives, partially offset by a decline in the contribution from our ambulatory care and extended care businesses.

Corporate Expenses, Net

Corporate expenses, net increased for the three months ended December 31, 2025 compared to the same prior year period primarily due to higher restructuring charges in fiscal 2026, partially offset by prior year remeasurement charges related to our Canadian retail disposal group held for sale, as discussed in Financial Note 2, “Business Acquisitions and Divestitures” to the accompanying condensed consolidated financial statements included in this Quarterly Report.

Nine Months Ended December 31, 2025

Corporate expenses, net increased for the nine months ended December 31, 2025 compared to the same prior year period primarily due to higher restructuring charges in fiscal 2026 and prior year gains related to our investments in equity securities of certain U.S. growth stage companies in the healthcare industry, partially offset by lower litigation charges in the current year compared to prior year and prior year remeasurement charges related to our Canadian retail disposal group held for sale, as discussed in Financial Note 2, “Business Acquisitions and Divestitures” to the accompanying condensed consolidated financial statements included in this Quarterly Report.